With disruptive platforms such as Airbnb coming up in the real estate arena, local developers like CDL and CapitaLand have started to venture into investing in potentially disruptive players in the Chinese market. CDL reportedly invested $20M into the Chinese online apartment rental platform, Mamahome, at a valuation of over $100M.
CDL is the developer for the upcoming condo at Sims Drive in 2020.
CDL’s investment, mamahome
Mamahome is an online one-stop solution for home-owners and rental customers as it provides a website for booking, online management software and other value-added services such as housekeeping and a concierge.
Mamahome has a presence in over 20 Chinese cities and there are more than 100,000 listings on its portal, with the majority of them in major cities such as Shanghai, Beijing and Guangzhou.
In a statement released, Mr. Mark Yip (Overall CMO and China CEO) mentioned that this investment would contribute to future long-term recurring income streams to CDL as Mamahome is in a rapidly-growing sector.
CDL NOT THE ONLY ONE
CDL is not the only developer that is looking at investing in potentially disruptive real-estate companies. CapitaLand’s serviced residence arm, Ascott, had also earlier reported an investment of over $67M into Chinese Airbnb, Tujia.
Tujia is a highly-valued company worth over USD$1Billion as its investors also include Chinese travel giant Ctrip and US-based HomeAway.
It would certainly not be surprising to see more of such investments in the near future as developers look to stay competitive and relevant by continuing to embrace technological advancements. This is a positive sign for local real estate start-ups that have already emerged over the past two years.
However, the government remains rather conservative. Short-term rental is currently not allowed in Singapore, even though Airbnb is rather prevalent here. As of now, URA has yet to address the legal issues surrounding Airbnb’s operations in Singapore. Find out how URA’s eventual decision would affect the property prices in Singapore.
Read More: Singapore property news 2020